Three essays concerning economic analysis associated with the supply chain

Analyzing different aspects of the supply chain aids in understanding how firms behave, interact and respond within an industry. Some concepts used to carry out this analysis include asymmetric price transmission, event study methodology and event costing analysis. Each of these topics is discussed...

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Main Author: Sherwell Cabello, Pablo
Other Authors: Capps, Oral
Format: Others
Language:en_US
Published: 2010
Subjects:
Online Access:http://hdl.handle.net/1969.1/ETD-TAMU-1715
http://hdl.handle.net/1969.1/ETD-TAMU-1715
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spelling ndltd-tamu.edu-oai-repository.tamu.edu-1969.1-ETD-TAMU-17152013-01-08T10:40:41ZThree essays concerning economic analysis associated with the supply chainSherwell Cabello, PabloSupply ChainAssymetric Price TransmissionEvent StudySimple Market ModelCost ModuleAnalyzing different aspects of the supply chain aids in understanding how firms behave, interact and respond within an industry. Some concepts used to carry out this analysis include asymmetric price transmission, event study methodology and event costing analysis. Each of these topics is discussed in this dissertation, presented as a set of three separate papers. The first paper analyzes asymmetric price transmission and elasticities of price transmission at the farm-retail level for whole and two percent milk in selected cities in the United States. The theoretical core of this paper relies on a comparison between the traditional Houck approach and the error correction model proposed by von Cramon- Taubadel and Fahlbusch. We reject the null hypothesis of symmetry for each product and city under both approaches. We also find little evidence of statistical superiority between the classic Houck approach and the error correction model. The second paper uses financial market event study methodology to calculate the economic impact on the supply chain related to one of the worst disease outbreaks in the food industry in the United States. This event began on November 3, 2003, when the Associated Press reported a hepatitis advisory in the Beaver Valley, Pennsylvania. This outbreak directly involved two publicly traded companies: Prandium and Sysco. The market model is used as the main foundation of the economic analysis. There is no evidence of abnormal rates of return or spillover effects in relation to the outbreak. However, there is evidence that volatility of returns increases after the event. The third paper develops a general conceptual economic module to quantify the impact of an animal disease outbreak. This study develops a generic economic module, which estimates cost in the face of a simulated animal disease outbreak under different mitigation strategies. This model was subsequently applied in a case study: a hypothetical case of a foot-and-mouth (FMD) outbreak in the Texas Panhandle analyzed under five different ex-post mitigation strategies. The results show that the most effective strategy is to slaughter and not to vaccinate. We conclude that analyzing the supply chain is important in understanding how markets behave.Capps, OralSalin, Victoria2010-01-15T00:15:33Z2010-01-16T02:04:38Z2010-01-15T00:15:33Z2010-01-16T02:04:38Z2006-082009-06-02BookThesisElectronic Dissertationtextelectronicapplication/pdfborn digitalhttp://hdl.handle.net/1969.1/ETD-TAMU-1715http://hdl.handle.net/1969.1/ETD-TAMU-1715en_US
collection NDLTD
language en_US
format Others
sources NDLTD
topic Supply Chain
Assymetric Price Transmission
Event Study
Simple Market Model
Cost Module
spellingShingle Supply Chain
Assymetric Price Transmission
Event Study
Simple Market Model
Cost Module
Sherwell Cabello, Pablo
Three essays concerning economic analysis associated with the supply chain
description Analyzing different aspects of the supply chain aids in understanding how firms behave, interact and respond within an industry. Some concepts used to carry out this analysis include asymmetric price transmission, event study methodology and event costing analysis. Each of these topics is discussed in this dissertation, presented as a set of three separate papers. The first paper analyzes asymmetric price transmission and elasticities of price transmission at the farm-retail level for whole and two percent milk in selected cities in the United States. The theoretical core of this paper relies on a comparison between the traditional Houck approach and the error correction model proposed by von Cramon- Taubadel and Fahlbusch. We reject the null hypothesis of symmetry for each product and city under both approaches. We also find little evidence of statistical superiority between the classic Houck approach and the error correction model. The second paper uses financial market event study methodology to calculate the economic impact on the supply chain related to one of the worst disease outbreaks in the food industry in the United States. This event began on November 3, 2003, when the Associated Press reported a hepatitis advisory in the Beaver Valley, Pennsylvania. This outbreak directly involved two publicly traded companies: Prandium and Sysco. The market model is used as the main foundation of the economic analysis. There is no evidence of abnormal rates of return or spillover effects in relation to the outbreak. However, there is evidence that volatility of returns increases after the event. The third paper develops a general conceptual economic module to quantify the impact of an animal disease outbreak. This study develops a generic economic module, which estimates cost in the face of a simulated animal disease outbreak under different mitigation strategies. This model was subsequently applied in a case study: a hypothetical case of a foot-and-mouth (FMD) outbreak in the Texas Panhandle analyzed under five different ex-post mitigation strategies. The results show that the most effective strategy is to slaughter and not to vaccinate. We conclude that analyzing the supply chain is important in understanding how markets behave.
author2 Capps, Oral
author_facet Capps, Oral
Sherwell Cabello, Pablo
author Sherwell Cabello, Pablo
author_sort Sherwell Cabello, Pablo
title Three essays concerning economic analysis associated with the supply chain
title_short Three essays concerning economic analysis associated with the supply chain
title_full Three essays concerning economic analysis associated with the supply chain
title_fullStr Three essays concerning economic analysis associated with the supply chain
title_full_unstemmed Three essays concerning economic analysis associated with the supply chain
title_sort three essays concerning economic analysis associated with the supply chain
publishDate 2010
url http://hdl.handle.net/1969.1/ETD-TAMU-1715
http://hdl.handle.net/1969.1/ETD-TAMU-1715
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